Daily Forex News & Analysis – 23 August 2013

The dollar traded mixed on Thursday after data came out mixed showing a bigger-than-expected rise in Initial Jobless Claims but further strength in the housing market. The greenback ended the day at 1.3360 to the euro and 98.70 to the yen. Today’s data includes New Home Sales in July which is expected to show a -2.0% fall.

EUR

The euro rose strongly on Thursday after both Services and Manufacturing PMI increased well-above what had been expected, boosting hopes of a recovery in the euro-zone. The single currency ended the day at 1.3360 to the dollar and 131.81 to the yen. Today’s data includes German GDP which is expected to show a 0.9% rise in the 2nd quarter.

GBP

The pound fell overall on Thursday after doveish commentary from BOE’s Martin Weale in which he said that he could still see circumstances in which it would be sensible to undertake further asset purchases. Sterling ended the day trading at 1.5594 to the dollar and 0.8567 to the euro. Today’s data includes 2nd quarter GDP revisions which are expected to show a 0.6% rise quarter-on-quarter and a 1.4% rise year-on-year.

JPY

The yen fell on Thursday, as concerns about the cost of meeting the country’s energy needs continued to weigh heavily following the recent radioactive leak at the Fukushima reactor plant, which has increased public hostility towards nuclear power. The yen ended the day at 98.70 to the dollar and 153.92 to the pound.

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I am a forex analyst, trader and writer. I have had a career writing articles for websites and journals, starting in the travel sector and then in Forex. I use a combination of technical and fundamental analysis in my forecasting. When I joined Forex4you in 2010 I thought it was a great opportunity to work as an analyst for an international broker. I provide technical forecasts with clear entry points and targets as well as articles on fundamental and trading themes. Good luck and happy trading!